Industry-Scenario

The global market for Machine Tools is projected to reach US$140.5 billion by 2020, driven by the steady recovery in the global Purchasing Managers Index (PMI). Asia-Pacific represents the largest market worldwide. The region also ranks as the fastest growing market with a CAGR of 9.4% over the analysis period led by rapidly growing manufacturing and industrial activity, especially in countries such as India, Thailand, Malaysia,Taiwan, and South Korea. Government initiatives such as development of SEZs, industrial corridors,industrial clusters, fab cities and textile parks, and subsidies and tax cuts to manufacturing groups are also fuelling growth in the industrial sector in the region. Improvements in road, rail and marine infrastructure and trade related benefits from governments such as abolishment/reduction in import duties and excise duties on certain imported raw materials and semi-finished goods and special export related incentives on finished goods, machinery and equipment.

The Indian Engineering sector has witnessed a remarkable growth over the last few years driven by increased investments in infrastructure and industrial production. The engineering sector, being closely associated with the manufacturing and infrastructure sectors, is of strategic importance to India's economy.

India's manufacturing sector has the potential to touch US$ 1 trillion by 2025. There is potential for the sector to account for 25-30 per cent of the country's GDP. Business conditions in the Indian manufacturing sector continue to remain positive.

The Indian auto industry is one of the largest in the world. The industry accounts for 7.1%of the country's Gross Domestic Product (GDP).

The Indian Auto Component industry is expected to grow by 8-10 per cent in FY 2017-18, based on higher localisation by Original Equipment Manufacturers (OEM), higher component content per vehicle, and rising exports from India, as per ICRA Limited.

India needs Rs 31 trillion (US$ 454.83 billion) to be spent on infrastructure development over the next five years, with 70 per cent of funds needed for power, roads and urban infrastructure segments